Research-based policies to help foster growth of SMEs

Minister for undertaking reforms based on studies, innovation

LAHORE: Small and medium enterprises (SMEs) are the real engine that could drive Pakistan’s economy upwards, but they need several reforms both from government and private institutions.

SME development policies based on research will pave the way for economic revolution in Pakistan.



This was the crux of an international conference on SMEs organised by the Small and Medium Enterprises Development Authority (Smeda) in collaboration with the University of Management and Technology (UMT) on Wednesday.

Speaking at the conference, Punjab Minister of Industries, Trade and Investments Sheikh Alauddin acknowledged the dire need for instituting policy reforms based on research, field studies, circumstantial evidence and innovation.

“The importance of creating a best practice ecosystem to foster the establishment and growth of SMEs requires research-based policy measures,” he said and asked development agencies and government departments to play instrumental role in translating the research outcome into concrete projects.

He agreed that SME-led economic growth could not be achieved without developing synergies among all stakeholders. “This conference will prove to be a milestone in SME development as it has brought together the stakeholders on one platform,” he said.

Federal Industries and Production Secretary Khizar Hayat Gondal declared that SME development was the prime agenda of the government and Smeda, being part of the Ministry of Industries and Production, had been making efforts to serve as a bridge between SMEs and the government.

The diverse product and service portfolio of Smeda was serving the need for new enterprise creation and promoting growth of businesses in the country.

“We can never be able to delve into deeper depths of the SME sector without research, as through research, we are able to comprehend the complex dimensions of SMEs and are able to create the business infrastructure necessary to meet growing needs of businesses,” he said.

Smeda CEO Sher Ayub said the authority was striving to create an environment conducive for SMEs as Pakistan had no option other than the development of small and medium units to meet the challenges of unemployment and poverty.

However, the goal had been a dream just for having no accurate data and research, he said, adding an important feature of the SME conference introduced last year was to promote business-related research in higher educational institutes.

UMT Rector Dr Hassan Sohaib Murad revealed that the university had encouraged all varsities of Pakistan to focus their research on SME development because the sector constituted 99% of businesses in Pakistan and contributed an estimated 40% to the national economy.



“We set an ideal example of public-private partnership that needs to be replicated and assure best cooperation of the university in the future also for economic betterment of the country,” he said.

Published in The Express Tribune, March 16^th, 2017.

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